As a direct results of falling Bitcoin (BTC) costs, complete revenue earned by miners in transaction charges and mining rewards dropped to its one-year lows at practically $15 million on July 4. However, a concurrent fall in graphic playing cards or GPU costs is about to assist miners offset their operational prices amid an ongoing bear market.
Bitcoin mining revenue fell 79.6% over a interval of 9 months, ever since reaching an all-time excessive of $74.4 million on Oct. 25, 2021. In addition, a world chip scarcity and the coronavirus pandemic shot up costs of crucial a part of a mining rig — the graphics processing unit (GPU) — additional impacting the miners’ backside line.
Bitcoin mining revenue over the previous 12 months. Source: Blockchain.com
With card producers resuming operations the world over, GPU costs have seen an enormous decline with some playing cards promoting for under MSRPs. In May alone, GPU costs dropped over 15% on common as provide exceeded the market demand. Moreover, the current inflow in GPUs has pressured sellers on the secondary markets to carry down their exorbitant costs on used mining rigs.
GPU price development over the previous one 12 months. Source: TechSpot
Cointelegraph beforehand reported that a number of public Bitcoin miners are well-positioned to survive the extended bear market because the low revenue continues to maintain the operational prices of the mining amenities. As proven under, Argo, CleanSpark, Stronghold, Marathon and Roit are among the miners with a secure mining revenue to operational price ratio — a good indication of excellent well being.
Monthly working money move vs. mining revenue. Source: Arcane Crypto
Moreover, the meteoric drop in GPU costs opened up a small window of alternative for small-time miners to procure a chunk of extra highly effective and environment friendly mining tools. Coupled with decrease hash fee necessities of 203.6 exa hashes per second, miners now require decrease computing energy to efficiently mine a block on the Bitcoin blockchain.
Related: Marathon Digital retains on mining regardless of BTC price hunch
Despite the evident drop in mining revenue, Marathon Digital Holdings revealed to proceed stacking BTC through mining whereas being “fairly well insulated and well-positioned.”
Speaking to Cointelegraph, Charlie Schumacher, VP of company communications at Marathon Digital, shared insights on their general operations:
“For reference, in Q1 2022, our cost to produce a Bitcoin was approximately $6,200. We also have fixed pricing for power, so we are not subject to changes in the energy markets.”